DOVER, DE — Delaware shoppers who entered rent-to-own agreements through Acima Digital may be eligible for money back or reductions in what they still owe after a $183.5 million settlement announced by Attorney General Kathy Jennings.
The agreement was reached with Acima Digital, LLC and its direct parent, Acima Holdings, LLC, after a coalition of 43 states reviewed the company’s business practices. Officials said the settlement includes restitution for consumers, forgiveness of lease balances and a payment to the states.
Delaware residents should not need to file a claim to receive relief if they qualify. The settlement administrator will reach out to people owed restitution, while Acima will contact those whose lease balances are being reduced.
How the multistate settlement breaks down
State officials said the settlement totals $183.5 million, with $43 million set aside for consumer restitution, $130 million for lease balance reductions and $10.5 million paid to the states. Delaware’s share includes about $230,110 in restitution and $511,582 in lease forgiveness.
The state will also receive $81,875 as part of the agreement. Delaware joined 42 other states in the case, including neighboring Maryland, along with a broad group of states across the country.
Those states said the settlement resolves allegations about how Acima marketed and structured its rental-purchase agreements. The agreement covers customers who entered those deals through stores partnering with the company.
What Acima sold through partner stores
Acima works with retail stores in Delaware to offer rental-purchase agreements, a type of arrangement that lets a customer rent an item with the option to own it later. Officials emphasized that these contracts function differently from a traditional loan.
According to the states, Acima presented these deals as if customers were signing up for a 90-day payoff program. The allegations say many consumers were instead automatically placed into the longest term, which ran 12 months.
That structure, officials said, could leave some shoppers paying roughly twice the cash price listed by the store. The states argued that consumers did not always understand the true cost of the agreement when they signed up.
Allegations about advertising and online sign-up terms
The states also said Acima used words such as “credit” in advertisements in a way that could make customers think they were getting conventional financing. Officials said the company’s online signing process hid important terms that should have been clearer.
Another concern was the company’s policy on ending agreements. The states said Acima made it difficult for customers to walk away without a penalty, even if they tried to return the item.
Jennings said Delaware consumers should be able to trust the companies they do business with. In announcing the settlement, she said Acima “betrayed that trust” and that the agreement would return money that should not have been taken in the first place.
Business changes Acima must now make
Along with the financial relief, Acima agreed to change the way it does business. The company must train the stores it works with and cannot make certain claims in ads unless key details are also shown clearly.
Acima also cannot hide terms during the electronic signing process or mark up the cash price set by its retail partners. Officials said those changes are meant to make pricing and contract terms easier for customers to understand before they agree.
The settlement bars Acima from preventing customers from ending agreements by returning the item. It also requires the company to comply with rules on handling late deliveries, damaged merchandise and repairs during the lease period.
Credit reporting limits and what customers should expect next
For the next five years, Acima cannot report rental-purchase agreements to the major credit reporting agencies. Officials said that provision is part of the broader effort to reshape how the company handles consumer accounts and debt collection.
The states also raised concerns about the company’s practices involving debt collection and credit bureau reporting, along with how it handled account management. Those allegations are included in the matters resolved by the settlement.
Consumers who qualify do not need to take action to get relief. Restitution will be handled through the settlement administrator, and Acima will contact customers eligible for lease forgiveness.
